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Netflix stock was down more than 10% in after-hours trading Wednesday following the company's announcement that it lost over 100,000 U.S. subscribers last quarter. It was expected to gain roughly 300,000 subscribers.

Why it matters: Analysts weren't expecting the streaming giant to lose subscribers, especially since rival streaming services, like HBO Max, Disney + and NBCUniversal's new service, aren't expected to launch for another year or so.

By the numbers, via CNBC:

  • Earnings per share: 60 cents vs. 56 cents expected, per Refinitiv consensus estimate.
  • Revenue: $4.92 billion vs. $4.93 billion expected, per Refinitiv.
  • Domestic paid subscriber additions: A loss of 126,000 vs. a gain of 352,000, forecast by FactSet.
  • International paid subscriber additions: 2.83 million vs. 4.81 million, forecast by FactSet.

Details: Netflix also announced that it missed on guidance for international subscriber additions. Investors were hoping Netflix could continue to grow international subscribers while domestic subscriber growth stalled.

  • The Los Angeles-based company also missed slightly on revenue, but exceeded earnings per share.

Yes, but: Netflix is estimating higher third-quarter subscriber growth in light of new popular content additions, including the third season of "Stranger Things," which was released in early July, as well as new seasons of "The Crown" and "Orange is the New Black."

Be smart: Netflix also increased prices this past quarter, which may have also impacted subscriber growth.

The big picture: The company is also struggling to convince investors that subscriber growth won't be impacted by the loss of hit catalog series, like "The Office," which is moving to NBC, and "Friends," which will be available on HBO Max.

  • In a letter to investors, Netflix said it has been moving its own exclusive content to tighter windows and that it doesn't think losing catalogs will hurt its business in the long term.
  • "From what we’ve seen in the past when we drop strong catalog content (Starz and Epix with Sony, Disney, and Paramount films, or 2nd run series from Fox, for example) our members shift over to enjoying our other great content," the letter said.

Go deeper: The business of Netflix

Go deeper

Thousands without power as "hazardous" winter storm lashes East Coast

Winter view from Charlotte as winter storm Izzy creates dangerous conditions in Charlotte, N.C. on Jan. 16. Photo: Peter Zay/Anadolu Agency via Getty Images

A major winter storm was lashing much of the East Coast on Sunday, causing widespread power outages and disrupting travel over the holiday weekend.

The big picture: Heavy snow and ice accumulations are "likely to produce hazardous travel," downed trees and more power outages from the Mid-South to the Northeast, per the National Weather Service. Some parts of the U.S. can expect to see up to a foot of snow through Monday.

Updated 1 hour ago - Science

Volcanic eruption in Tonga caused "significant" damage

This satellite image of the eruption on Jan. 15 taken by Himawari-8, a Japanese weather satellite operated by Japan Meteorological Agency and released by National Institute of Information and Communications Technology (NICT). Photo: NICT via AP

Significant damage has been reported in Tonga following an undersea volcanic eruption on Saturday, which covered the Pacific nation in ash and cut off communication lines.

Driving the news: The eruption triggered tsunami warnings across Tonga's islands and in other regions, including the West Coast of the U.S. and New Zealand.

2 hours ago - World

North Korea launches 4th suspected missile test this month

A news broadcast in Seoul, South Korea, of an apparent North Korean missile test on Monday morning local time. Photo: Jung Yeon-je/AFP via Getty Images

North Korea's military fired "two suspected short-range ballistic missiles" eastward from Pyongyang on Monday morning local time, per South Korean and Japanese officials.

Why it matters: The fourth such launch since Jan. 5 comes days after North Korea's military warned of "stronger" action if the U.S. moved to have more sanctions imposed on the country.

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